MORNING UPDATE: PriceWatch Alerts for TSLA and More... for 2013-10-14 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for TSLA, CVS, WWWW and More... October 14, 9:00 AM ET - PriceWatch Alerts for TSLA, EOG, TTM, RKUS, SBGI, CVS, CTSH, ECA, BLOX and WWWW, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for TSLA, EOG, TTM, RKUS, SBGI, CVS, CTSH, ECA, BLOX and WWWW. Tesla (NASDAQ: TSLA) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $178.70 while selling the November $175.00 call will produce a new covered call with a break-even point around $160.70. At that price, this position has a target return of 8.9%. This trade will have roughly 10.1% downside protection, while still aiming for a 8.9% return in 33 days. It will lock in that return as long as Tesla is above $175.00 on 11/16/2013. For comparison purposes only, this TSLA covered call aims for an annualized return rate of 98.3%. EOG Resources (NYSE: EOG) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $178.99 while simultaneously selling the January $175.00 call will result in a new position with a target return of 4.9%. Based on recent prices, this position will cost about $166.89, which is also the trade?s breakeven point. At that level, this covered call has 6.8% downside protection, while still providing a 4.9% return in 96 days as long as EOG is above $175.00 on 1/18/2014. For comparison purposes only, this EOG Resources covered call aims for an annualized return rate of 18.4%. Tata Motors (NYSE: TTM) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the November $32.00 call while at the same time buying TTM stock for $32.32 will produce a new covered call with a target return of 4.5%. Based on recent data, this trade will cost about $30.62, which is also the covered call?s breakeven point. At that price, this covered call has 5.3% downside protection, while seeking an assigned return of 4.5% return in 33 days. If TTM is higher than $32.00 on 11/16/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 49.8%. Ruckus Wireless (NYSE: RKUS) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the November $17.50 call while simultaneously buying RKUS stock for $17.95 will result in a new position with a break-even point around $15.75. At that price, this position has a target return of 11.1%. This trade has 12.3% downside protection, while still providing a 11.1% return in 33 days as long as RKUS is above $17.50 on 11/16/2013. For comparison purposes only, this Ruckus Wireless covered call targets an annualized return rate of 122.9%. Sinclair Broadcast Group (NASDAQ: SBGI) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $34.68 while selling the March $30.00 call will produce a new covered call with a break- even point around $28.48. At that price, this position has a target return of 5.3%. This trade will have roughly 17.9% downside protection, while still aiming for a 5.3% return in 159 days. It will lock in that return as long as Sinclair Broadcast Group is above $30.00 on 3/22/2014. For comparison purposes only, this SBGI covered call aims for an annualized return rate of 12.2%. CVS Caremark (NYSE: CVS) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $59.57 while simultaneously selling the January $60.00 call will result in a new position with a target return of 4.3%. Based on recent prices, this position will cost about $57.52, which is also the trade?s breakeven point. At that level, this covered call has 3.4% downside protection, while still providing a 4.3% return in 96 days as long as CVS is above $60.00 on 1/18/2014. For comparison purposes only, this CVS Caremark covered call aims for an annualized return rate of 16.4%. Cognizant Technology (NASDAQ: CTSH) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the January $87.50 call while at the same time buying CTSH stock for $88.85 will produce a new covered call with a target return of 5.2%. Based on recent data, this trade will cost about $83.15, which is also the covered call?s breakeven point. At that price, this covered call has 6.4% downside protection, while seeking an assigned return of 5.2% return in 96 days. If CTSH is higher than $87.50 on 1/18/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 19.9%. Encana (NYSE: ECA) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the April $18.00 call while simultaneously buying ECA stock for $17.68 will result in a new position with a break- even point around $16.58. At that price, this position has a target return of 8.6%. This trade has 6.2% downside protection, while still providing a 8.6% return in 187 days as long as ECA is above $18.00 on 4/19/2014. For comparison purposes only, this Encana covered call targets an annualized return rate of 16.7%. Infoblox (NYSE: BLOX) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $44.47 while selling the January $40.00 call will produce a new covered call with a break-even point around $36.17. At that price, this position has a target return of 10.6%. This trade will have roughly 18.7% downside protection, while still aiming for a 10.6% return in 96 days. It will lock in that return as long as Infoblox is above $40.00 on 1/18/2014. For comparison purposes only, this BLOX covered call aims for an annualized return rate of 40.2%. Web.Com (NASDAQ: WWWW) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $30.72 while simultaneously selling the November $30.00 call will result in a new position with a target return of 6.5%. Based on recent prices, this position will cost about $28.17, which is also the trade?s breakeven point. At that level, this covered call has 8.3% downside protection, while still providing a 6.5% return in 33 days as long as WWWW is above $30.00 on 11/16/2013. For comparison purposes only, this Web.Com covered call aims for an annualized return rate of 71.8%. *Annualized returns are shown for comparison purposes only Are you looking for a more conservative strategy that solves the pitfalls that come with covered calls investing? Check out our RadioActive Home Study Kit (http://www.poweropt.com/psDetails.asp?pid=25)! Learn how to limit your risks in any trade and keep your upside open ? 'Cut your losers short and let your winners run'. These limited risk techniques have saved investors thousands of dollars during unexpected market downturns and Black Swan events. The RadioActive Home Study Kit teaches the proper limited risk trade setup and the 10 different Income Methods that are used to lower the initial risk, potentially bulletproof your stock positions and earn extra income. 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MARKET OVERVIEW In international trading overnight, Asian markets put in a mixed session. The Taiwan TSEC fell 0.9% and the Australian All- Ordinaries dipped 0.4%. However, on the other side of the coin, the Shanghai SEC rose 0.4% and the Mumbai Sensex added 1.3%. Japanese and Hong Kong traders were on holiday. China's consumer and producer price index rose more than expected and fell less than expected, respectively. In Europe, most stock markets are moving lower this morning. The French CAC 40, Euronext 100, and German DAX are all down 0.3% at last check, while the FTSE 100 is just barely in positive territory. Energy futures are almost all lower this morning, with front-month West Texas Intermediate crude oil down 0.5% to $101.50. Heating oil and gasoline are both down a cent or two, but natural gas is higher by 1.2% at $3.82. Gold is up sharply at $1,288, up $20.30 or 1.6%. Silver, copper and platinum are all also in the green. The U.S. Dollar is weaker against the Yen and the Euro, and Bitcoins advanced late in the weekend to $152. PUT/CALL RATIO Friday, 1,134,755 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 677,311 put contracts. The single-session put/call was 0.6, while the 20-day moving average is now at 0.62. SUPPORT & RESISTANCE LEVELS The S&P 500 Depository Receipts (SPY) ETF has support at $167.50 and is back above resistance. The Nasdaq 100 (QQQ) has support at $77 and is above resistance. TODAY'S ECONOMIC CALENDAR There are no major economic reports scheduled for today. EARNINGS EXPECTED TODAY WTFC PKG JBHT BRO This Morning Update was prepared with data and information provided by: PowerOptionsPlus.com - The Best Way To Find, Compare, Analyze, and Make Money On Option Investments - Forbes Best of the Web Winner. InvestorsObserver -- Better Strategies for Making Money in Up, Down, and Flat Markets -> Get Started with InvestosObserver's 100% Free Essentials Service: http://www.poweropt.com/io All stocks and options shown are examples only. These are not recommendations to buy or sell any security and they do not represent in any way a positive or negative outlook for any security. Potential returns do not take into account your trade size, brokerage commissions, taxes or our subscription fees which will affect actual investment returns. Stocks and options involve risk and are not suitable for all investors and investing in |
